What is it about?

We integrate into a unified framework the spatial and the employment dimensions of worker mobility. We trace workers across firms, across establishments, and across regions. We draw upon the spatial dimension of internal labor markets in firms with multiple establishments in multiple locations.

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Why is it important?

While most previous literature focus on internal labor markets (ILM) in single establishment firms, we explore the spatial dimension of ILM in firms with multiple establishment. By doing so we develop a framework to estimate returns to migration. Our results indicate that the contemporaneous wage premium to migration is around 3 percentage points. For the case of job switchers, we find that the return to migration is due to access to better jobs at the destination.

Perspectives

Writing this article was a challenging and hard-working pleasure as with our extremely rich matched employer-employee data set we were able to track workers across establishments of the same firm and across firms, and also identifying if the worker's mobility implied (or not) a migration.

Marisa Tavares
Universidade Catolica Portuguesa

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This page is a summary of: The spatial dimension of internal labor markets, Journal of Regional Science, August 2017, Wiley,
DOI: 10.1111/jors.12353.
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